FAQ

Nearshoring, also known as nearshore outsourcing, is the outsourcing of business activities to relatively nearby countries. In the case of SharpMinds, this means building a remote development team at one of our locations in Portugal, Bosnia and Herzegovina, or Ukraine. By looking across the border, you expand your search area, gain access to more qualified developers, and increase your capacity.

Companies have different motivations for choosing nearshoring for their software development. The main reasons are often:

Access to talent and expertise: In their own country or region, there might be a lack of specific knowledge or it might be difficult to find the right people. With nearshoring, you expand the pool of available talent. By adding more capacity to your development team, you can launch your product faster. Additionally, with more and better expertise, you can build a stronger foundation for your product and adapt more quickly to changes in the market and technologies.

Cost savings: Cost savings can be an important driver. Often, labor costs are lower than in the home country. However, it is important to emphasize maintaining quality standards.

Flexibility: A sudden increase in project volume, new customers, or an expansion of the product portfolio can all lead to a demand for software development. Companies struggling with higher workloads often try to expand their teams. Nearshoring offers the ability to easily scale up or down in response to fluctuations in demand, allowing you to quickly adapt to changing market conditions.Diversity: Nearshoring directly brings cultural diversity into your team. Research shows that greater diversity leads to creativity, innovation, and a better understanding of different customer groups. This, in turn, contributes to a better corporate image and more satisfied and loyal employees.

Nearshoring and offshoring are both strategies for outsourcing business activities or processes, but they differ in the geographical location of the service providers. Nearshoring refers to outsourcing services to a nearby country. This means that the country is often within the same region or an adjacent time zone. The advantage is that there is an overlap in working hours, and often similar cultural and business norms, which facilitates communication and collaboration.
In offshoring, you look to more distant countries, often on the other side of the world. Offshoring usually offers greater cost savings due to lower wages in distant countries. However, offshoring can be less flexible due to the physical and cultural distance and the time differences.

To find out if nearshore outsourcing is the right solution for your organization, it’s good to review the following list:

• You want to expand your current development capacity or set up a new development team
• You are set up for remote work
• You expect consistent quality
• Communicating in English is not a problem for you
• You want to be able to quickly interact with your developers
• You want direct access to development capacity
• You are looking for high-quality developers

Or read our blog post about the “8 Signs That Nearshoring is a Strategic Choice” here!

Access to knowledge and expertise: Nearshoring expands your talent pool, allowing you to find more qualified people and specific expertise. With this additional and better expertise, you can create a stronger foundation for your product and adapt more quickly to market and technological changes.

Cost savings: One of the biggest advantages of nearshoring is cost savings. Labor costs are often lower than in your home country, and overall costs are often reduced through HR support.

Flexibility: Nearshoring offers the flexibility to scale up or down quickly in response to fluctuations in demand, enabling you to better respond to changing market conditions.

Time zone overlap: You can communicate and collaborate in real time, allowing adjustments and problems to be resolved quickly. This also gives you greater control over your process.

Cultural similarities: Nearshoring partners often share similar cultural values. This reduces miscommunication and improves collaboration.

Risk diversification: By combining nearshoring with onshore and/or offshore teams, you can better spread your risks and be more resilient to unexpected problems or disruptions.

Business growth: When the first two benefits come together, your value proposition improves. You get a better product that is also cheaper, or at least no more expensive to produce.

Faster time-to-market: The combination of time zone overlap, access to expertise, and flexible scalability allows you to shorten development time and launch your product faster.

Improved customer satisfaction: With nearshoring, you can respond more quickly to customer needs and market demand, leading to higher customer satisfaction and loyalty.

SharpMinds has its headquarters in Amersfoort, the Netherlands. Additionally, we have offices in Chernivtsi, Ukraine; Lisbon, Portugal; and Sarajevo, Bosnia and Herzegovina. From these international locations, our developers work remotely for our clients. Curious about a specific location? You can see them here!